Nvidia’s Fortunes and the Art of Speculation

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The market, my dear friends, is a fickle mistress. One observes a surge in the valuation of Nvidia (NVDA +7.37%) – a rather substantial climb, I’m told, approaching eight percent – and one wonders if it isn’t merely a collective delusion, gilded with the promise of artificial intelligence. Still, a seven percent gain is never entirely unpleasant, particularly when one considers the alternative. As of this afternoon, the stock retains a respectable seven percent increase. It seems optimism, even when misplaced, can be quite profitable.

The catalyst for this little dance of numbers? A report from Amazon (AMZN 5.74%), a company that, while admirable in its relentless pursuit of consumer desire, often mistakes efficiency for elegance. Their fourth-quarter results, while robust enough – net sales climbing fourteen percent to $213.4 billion – were, as always, less about artistic merit and more about sheer volume. Earnings per share, a mere four percent increase to $1.95, suggest a certain… predictability. One suspects they are more concerned with delivering parcels than cultivating the soul.

However, even a merchant prince can stumble upon a fortunate circumstance. Amazon Web Services, their cloud division, experienced a twenty-four percent revenue increase, reaching $35.6 billion – a third consecutive quarter of acceleration. A backlog of $244 billion – up forty percent year over year – suggests a ravenous appetite for computational power. It seems the modern world demands ever more data, and, alas, data requires hardware. The announcement of a staggering $200 billion capital expenditure plan for 2026 – a fifty-one percent increase – is, shall we say, rather… ambitious. One wonders if they plan to build a digital cathedral.

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The Curious Case of Nvidia and Amazon

The connection, you see, lies in a long-standing partnership. Amazon, despite a penchant for its own processors – the Graviton and Trainium – remains, for the moment, reliant on Nvidia’s graphics processing units. The revelation that Amazon is still utilizing six-year-old A100 chips, with no intention of retiring them, is a rather telling commentary on the supply chain. Demand, it appears, relentlessly outstrips availability. One might even suggest that scarcity is the mother of all valuations.

Furthermore, the expansion of their partnership – the deployment of Nvidia’s Blackwell GPUs, Spectrum-X Ethernet Switches, and NVLink interconnects – suggests a deepening entanglement. A most convenient arrangement, wouldn’t you agree? It is, after all, in the nature of commerce to exploit opportunity. The prospect of Nvidia benefiting from a significant portion of Amazon’s capital expenditure is, to put it mildly, encouraging. One anticipates a certain… dividend-like effect.

To lose one large tech client might be regarded as a misfortune; to gain their continued patronage looks like astute business acumen. And in the grand theatre of the market, my dears, it is always the performance that truly matters.

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2026-02-06 21:12